Business

Arkansas court tosses $1.2 billion judgment against Johnson & Johnson

LITTLE ROCK, Ark. — The Arkansas Supreme Court tossed out a $1.2 billion judgment against Johnson & Johnson on Thursday, reversing a lower court verdict that found the drugmaker engaged in fraudulent tactics when marketing the anti-psychotic drug Risperdal.

The high court ruled the state's Medicaid fraud law, which formed the basis of Arkansas' lawsuit, regulates health care facilities and that drug manufacturers, including Johnson & Johnson and its subsidiary, Janssen Pharmaceutical Inc., don't fall under its scope.

The state alleged that the companies didn't properly communicate Risperdal's risks and marketed it for off-label use.

Johnson & Johnson said there was no fraud and Arkansas' Medicaid program wasn't harmed.

Attorney General Dustin McDaniel said Thursday that he believes the legislature intended for the Medicaid fraud law to allow lawsuits like the one against Johnson & Johnson. He said he "will keep working to protect consumers against fraud and the kinds of irresponsible and greedy actions shown by Johnson & Johnson and Janssen Pharmaceuticals."

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